Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (June 2022)
31 slides from Cousins Properties's investor presentation, Jun 7, 2022
Slide 1: Investor Presentation June 2022
INVESTOR PRESENTATION June 2022
Slide 2: Why Cousins?
2 BENEFITING FROM POWERFUL OFFICE TRENDS BALANCE SHEET PRIMED FOR OPPORTUNITIES PREMIER SUN BELT PORTFOLIO TRACK RECORD OF SUCCESS WHY COUSINS? • Migration to the Sun Belt leading to outsized population and job growth • Flight to quality driving demand for newer, highly-amenitized assets • 100% Sun
Slide 3: Cousins at a Glance
35 COUSINS AT A GLANCE The Preeminent Sun Belt Office REIT NOI By Market1 19.3 MM SF portfolio3 2004 average year built3 90.6% leased3 32% of portfolio less than 5 years old or recently redeveloped3,4 1.5 MM SF development pipeline3 Dallas 3% Charlotte 10% Atlanta 37% Houston 3% Phoenix 7% Austin 31
Slide 4: Amenity-Rich Trophy Assets in Leading Sun Belt Markets
4 PREMIER SUN BELT PORTFOLIO Amenity-Rich Trophy Assets in Leading Sun Belt Markets 725 PONCE Atlanta HAYDEN FERRY Phoenix HEIGHTS UNION Tampa 300 COLORADO / COLORADO TOWER Austin THE RAILYARD Charlotte SPRING & 8TH Atlanta
Slide 5: Select Repositioning of High-Quality Assets in Prime Locations
5 PREMIER SUN BELT PORTFOLIO Select Repositioning of High-Quality Assets in Prime Locations 3350 PEACHTREE Buckhead Atlanta Completed 4Q21 Estimated Completion 4Q22 PROMENADE TOWER Midtown Atlanta Estimated Completion 3Q22 PROMENADE CENTRAL Midtown Atlanta Estimated Completion 4Q22 BUCKHEAD PLAZA Bu
Slide 6: Command Premium Rents
6 ATLANTA AUSTIN CHARLOTTE DALLAS PHOENIX TAMPA CLASS A ASKING RENT ($/SF)1 PREMIER SUN BELT PORTFOLIO Command Premium Rents 25% Higher than Class A Average in Our Markets 6 $34.28 $42.19 Total Market $33.19 $54.22 Total Market $32.87 $44.25 Total Market $34.19 $43.11 Total Market $36.08 $42.75 Tota
Slide 7: Sun Belt Migration is Leading to Outsized Population and Job Growth
7 1. Tampa, FL 2. Jacksonville, FL 3. Raleigh, NC 4. San Antonio, TX 5. Charlotte, NC 6. Nashville, TN 7. Atlanta, GA 8. Phoenix, AZ 9. Orlando, FL 10. Austin, TX RedFin’s Top Migration Markets 20211 SUN BELT MIGRATION Zillow’s Hottest Markets 20222 1. Phoenix, AZ 2. Dallas, TX 3. Orlando, FL 4. Atl
Slide 8: Corporate Relocations and Expansions Target Sun Belt Markets
88 BENEFITING FROM POWERFUL OFFICE TRENDS Corporate Relocations and Expansions Target Sun Belt Markets
Slide 9: Flight to Quality is Driving Demand for Newer Assets
9 Leasing Activity vs. Inventory by Age1 FLIGHT TO QUALITY Net Absorption by Age2 9 BENEFITING FROM POWERFUL OFFICE TRENDS Flight to Quality is Driving Demand for Newer, Highly-Amenitized Assets -211 57 Pre 2010 2010 - Present 8-qtr Net Absorption SF (MM’s) Bu ild in g A ge 81.1% 18.9% 72.5% 27.5% P
Slide 10: Low Portfolio Risk as Large Move-outs are in the Rearview Mirror
10 LEASE EXPIRATIONS BY YEAR1 POSITIONED FOR ORGANIC GROWTH Low Portfolio Risk as Large Move-outs are in the Rearview Mirror 10 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% DEA CUZ BXP KRC PGRE ARE BDN SLG VNO ESRT HIW PDM NYC FSP OFC CIO OPI HPP EQC DEI 2022 2023 2024 17% Avg = 27%
Slide 11: Increase Occupancy from Contractual New Leasing
11 92% 92% 92% 93% 93% 91% 90% 90% 90% 90% 91% 91% 89% 91% 90% 89% 87% 82% 84% 86% 88% 90% 92% 94% 96% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Wtd. Avg. Occupancy % Leased COUSINS’ PORTFOLIO OCCUPANCY vs LEASED1 3.1% contractual upside from recent re-leas
Slide 12: Continue to Roll-Up Existing Leases Upon Expirations
12 COUSINS’ INCREASE IN 2ND GENERATION CASH NET RENT1 POSITIONED FOR ORGANIC GROWTH Continue to Roll-Up Existing Leases Upon Expirations 12 0% 5% 10% 15% 20% 25% 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 Post-COVID Avg = 13.3% Avg = 10.7% Peer Avg2 = 6.0%
Slide 13: 1.5MM SF Active Developments Delivering Over Next Two Years
13 PHOENIX 287K SF 90% Ownership 92% Pre-Leased1 $138MM CUZ Investment2 ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH 1.5MM SF Active Developments Delivering Over Next Two Years NEUHOFF CURRENT DEVELOPMENT PIPELINE DOMAIN 9100 MILL AUSTIN 338K SF 100% Ownership 97% Pre-Leased1 $147MM CUZ Investm
Slide 14: Land Bank Supports 5.1MM SF of Additional New Development
14 DOMAIN POINT LEGACY UNION TWO / THREE LEGACY 600K SF VICTORY CENTER UPTOWN 460K SF DALLAS MIDTOWN 420K SF 887 WEST PEACHTREE 3354 PEACHTREE ATLANTA AUSTIN 715 PONCE MIDTOWN 200K SF DOMAIN 900K SF TAMPA CORPORATE CENTER V WESTSHORE 170K SF DOMAIN CENTRAL CHARLOTTE 303 TREMONT SOUTH END STATION SOU
Slide 15: Significant Opportunities to Grow in Domain Submarket of Austin
15 ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH Significant Opportunities to Grow in Domain Submarket of Austin Domain Central I Future Development Domain Point 1 & 2 Domain 10 Domain 11 Domain 12 Domain 7 Domain 8 Domain 3Domain 4 Domain Point 3 & 4 Future Development Domain 2 Domain 9 Current
Slide 16: Leverage Significantly Below Peers with Substantial Liquidity
16 NET DEBT/EBITDA1 BALANCE SHEET PRIMED FOR OPPORTUNITIES Leverage Significantly Below Peers with Substantial Liquidity 16 $662MM Liquidity2 5.3x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x SLG PGRE VNO HPP BXP FSP BDN OPI DEA OFC ESRT CIO KRC ARE PDM HIW CUZ Avg = 7.0x
Slide 17: Strong In-Place Rent Growth
17 COUSINS’ IN-PLACE GROSS RENT PER SF1 TRACK RECORD OF SUCCESS Strong In-Place Rent Growth 17 $43.90 $30.00 $32.00 $34.00 $36.00 $38.00 $40.00 $42.00 $44.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 30% INCREASE
Slide 18: Attractive FAD Growth
18 $1.58 $1.67 $1.82 $1.76 $1.95 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 $1.80 $1.90 $2.00 2017 2018 2019 2020 2021 COUSINS’ ANNUAL FAD PER SHARE1 TRACK RECORD OF SUCCESS Attractive FAD Growth 18 23% INCREASE COVID Impact
Slide 19: Premier Sun Belt Portfolio Combined with Development Expertise Drives NAV Growth
19 26.8% 10.6% -0.2% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q203Q204Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 TRACK RECORD OF SUCCESS Premier Sun Belt Portfolio Combined with Development Expertise Drives NAV Growth 19 NET ASSET VALUE APPRECI
Slide 20: Meet Our Executive Team
20 M. Colin Connolly President and Chief Executive Officer John S. McColl Executive Vice President, Development Gregg D. Adzema Executive Vice President and Chief Financial Officer Pamela F. Roper Executive Vice President, General Counsel and Corporate Secretary Richard Hickson Executive Vice Presid
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Slide 22: Atlanta Market Snapshot
22 Submarket Concentration2 Industry Concentration4 ATLANTA Market Snapshot 8.2MM Total Square Feet1 88% Leased1 $42.19 Average Asking Rent3 Buckhead 39% Midtown 37% Central Perimeter 16% North Fulton 8% Technology 26% Financial Services 21% Professional Services 11% Consumer Goods and Services 9% H
Slide 23: Austin Market Snapshot
23 AUSTIN Market Snapshot 4.6MM Total Square Feet1 93% Leased1 $62.77 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 Technology 35% Professional Services 20% Legal Services 14% Other 12% Financial Services 8% Energy 5% Healthcare 3% Real Estate 3% Domain 52% CBD 35% Southwest
Slide 24: Charlotte Market Snapshot
24 CHARLOTTE Market Snapshot 1.4MM Total Square Feet1 95% Leased1 $37.95 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 $42.75 Average Asking Rent3 Financial Services 32% Marketing 18%Legal Services 13% Consumer Goods and Services 12% Insurance 11% Other 8% Professional Servic
Slide 25: Dallas Market Snapshot
25 DALLAS Market Snapshot 93% Leased1 516K Total Square Feet1 $54.22 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 Other 3% Energy 58% Financial Services 26% Professional Services 7% Legal Services 6% Preston Center 29% Legacy 71%
Slide 26: Phoenix Market Snapshot
26 PHOENIX Market Snapshot 92% Leased1 1.3MM Total Square Feet1 Submarket Concentration2 Industry Concentration4 Tempe 100% $44.25 Average Asking Rent3 Technology 26% Professional Services 23%Financial Services 19% Insurance 8% Consumer Goods and Services 8% Other 8% Marketing 4% Real Estate 4%
Slide 27: Tampa Market Snapshot
27 93% Leased1 2.0MM Total Square Feet1 $43.11 Average Asking Rent3 TAMPA Market Snapshot Submarket Concentration2 Industry Concentration4 Healthcare 33% Consumer Goods and Services 15%Legal Services 12% Technology 11% Professional Services 9% Financial Services 7% Insurance 7% Other 6% Westshore 86
Slide 28: Footnotes
28 Page 13 – Attractive Development Pipeline for Future Growth 1. Represents office leased percentage as of 31-Mar-2022 filings. 2. Cousins share of total estimated project costs per 31-Mar-2022 filings. Page 14 – Attractive Development Pipeline for Future Growth 1. Represents Company’s estimate of
Slide 29: Forward-Looking Statements
29 Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2021, and the Quarterly Report
Slide 30: Contact Information
3344 Peachtree Road NE Suite 1800 Atlanta, GA 30326 cousins.comGregg Adzema Executive Vice President and Chief Financial Officer gadzema@cousins.com 404.407.1116 Roni Imbeaux Vice President, Finance and Investor Relations rimbeaux@cousins.com 404.407.1104
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